The Fed is also seeking to impose a fine and permanent banking ban against the bank’s former managing director Joseph Jiampietro due to his unapproved use and disclosure of agency secrets.
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In an order issued Wednesday, the U.S.
Goldman Sachs will pay a $36.3 million fine, and a former employee could be barred from the banking industry, after regulators found the firm improperly use confidential information to try and win business. Jiampietro was sacked by Goldman in October 2014, at the same time as Bansal. His lawyer said in a statement: “As Mr. Jiampietro has said from the start, he never requested confidential supervisory information from anyone, and never used it for his or anyone’s benefit. Upon discovering that Rohit Bansal had improperly obtained information from his former employer, the Federal Reserve Bank of NY, we immediately notified regulators, including the Federal Reserve”, said a bank spokesperson. In 2014, its employee Rohit Bansal circulated confidential Fed documents amongst team members in the bank.
“In August and September, Bansal and Jiampietro used the non-public ERM framework in at least five pitches to potential and existing clients”, the Fed charged.
The Fed also prohibits Goldman from rehiring Jiampietro or anyone else involved in the leak as an employee, consultant or contractor. The partner then notified Goldman’s compliance department. Both men were fired. The regulator ordered the bank to put in place stricter policies and training regarding the proper handling of confidential information. The New York City-based bank also said it had reviewed and strengthened its oversight policies and procedures.
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Goldman Sachs in a statement said it was pleased to have resolved the Fed allegations. Prosecutors had sought to sentence him to up to a year behind bars for theft of government property. The Fed wants Jiampietro to pay a $337,500 penalty.
